Investors: We'd like to build zero-emissions, baseload power stations to provide affordable electricity to consumers.

Politician: There's no market for that in Australia. //

This article by James Fleay of DUNE – Down Under Nuclear Energy looks at investment in nuclear energy on the National Electricity Market.

Nuclear energy is clean, cheap, reliable and safe.

Like many advocates for nuclear energy in Australia, my colleagues and I believed that if the Federal Government would only repeal the ban on nuclear power, business or state governments would eagerly build nuclear power plants (NPPs) to rapidly cut emissions, reduce power prices and improve network reliability. In fact, this belief prompted the creation of DUNE a company formed to study the investment case and present the facts to politicians and power market participants.

After all, being thus informed, they would hasten to repeal said law…right? How wrong we were.

The federal ban is only the first challenge to deploying clean, cheap and reliable power in Australia. The second, and much bigger problem, is our liberalised, energy-only National Electricity Market (NEM) and the out-of-market subsidies that provide additional revenue to solar and wind generators. Dr Kerry Schott, the chief advisor the Energy Security Board (ESB) recently confirmed this in an article in The Australian. Among other things, she confirmed that the NEM was not functioning to attract much needed new investment in “always on” power generation. Despite high power prices and a need for investment in “always on” generation, our NEM market design will not support NPP investment[1].